Suppose that in January of 2022, the Trump-era tax cuts expire. As a result, $50 billion is removed from the paychecks of working Americans. If the Marginal Propensity to Consume is 0.90, what total impact will this increase in personal income tax rates have on Aggregate Demand (AD)?
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Suppose that current macroeconomic conditions make an increa…
Suppose that current macroeconomic conditions make an increase in personal income tax rates appropriate, but Congress does not implement this measure. After all, the next election is right around the corner, and raising tax rates may harm re-election chances for members of Congress. This is an example of which problem associated with Fiscal Policy?
If Excess Reserves are $50,000, total transactions deposits…
If Excess Reserves are $50,000, total transactions deposits are $1,000,000, and the Required Reserve Ratio is 20%, then total reserves at this private bank are:
The Federal Reserve System (FED) was created in:
The Federal Reserve System (FED) was created in:
The Federal Reserve System (FED) was created in:
The Federal Reserve System (FED) was created in:
A bond is a:
A bond is a:
Suppose the Federal Reserve System decides to sell $400 bill…
Suppose the Federal Reserve System decides to sell $400 billion of US Treasury bonds from its portfolio to the general public. If the value of the Required Reserve Ratio is currently 25%, then:
When the US Treasury Department issues new government bonds…
When the US Treasury Department issues new government bonds to raise enough revenue to pay off the government bonds that mature this year, it is engaging in:
To conduct Monetary Restraint, the Federal Reserve can:
To conduct Monetary Restraint, the Federal Reserve can:
Which of the following are likely to limit the effectiveness…
Which of the following are likely to limit the effectiveness of fiscal policy in the real world?